Honeywell Named to Supply Two Avionics Systems for Boeing's New 7E7 ``Dreamliner'' Long-Range Aircraft; Potential Value of Programs is $1.5 Billion.

Business Editors

PHOENIX--(BUSINESS WIRE)--Feb. 6, 2004

Honeywell (NYSE:HON) announced today that it has been selected by Boeing to supply two systems to the 7E7 Dreamliner. The two systems are the Navigation (NAV) package, and the Crew Information System/Management System (CIS/MS). Together, the systems represent a potential total program value of $1.5 billion for Honeywell over the life of the 7E7 program.

"We are excited about continuing our long relationship with Boeing and being a part of this next generation of passenger jet aircraft," said Robert D. Johnson, President and CEO of Honeywell Aerospace. "Boeing asked each bidder to bring new ideas to the table, and Honeywell's unmatched technology and customer focus were the reasons we were selected to provide these important avionics systems," Johnson added.

Honeywell supplies major systems for the Boeing 717, 737, 757, 767, 777 and 747 passenger jet aircraft. The company's technology, world class customer support for Boeing customers, and outstanding aftermarket abilities made Honeywell the obvious choice for these important aircraft systems.

The Navigation (NAV) package includes the flight management function, which manages navigation and aircraft performance. An inertial reference system measures acceleration to determine aircraft location by keeping track of its movements in flight. The air data system measures such things as aircraft speed and altitude. A multi-mode receiver houses global navigation as well as conventional air navigation sensors that use ground navigation aids.

Honeywell is regarded as the leader in Inertial Reference Solutions for commercial air transport aircraft, and has a long-standing relationship with Boeing being chosen for the 757/767/777 aircraft. This award demonstrates Honeywell's continuing leadership in this vital aircraft system.

The Crew Information System/Maintenance System (CIS/MS) provides the aircraft operator with the general health of major aircraft systems. Honeywell is the provider of the successful Boeing 777 CIS/MS, and this award enables a similar solution for the B7E7.

Honeywell also remains a bidder on a number of 7E7 systems that have yet to be awarded by Boeing. In addition, Honeywell anticipates participating on new models of the 7E7, expects to be a major supplier of Buyer Furnished Equipment, and believes that once the 7E7 enters service, there will be service opportunities with operators. This is consistent with one of Honeywell's key strengths, recognized as the most respected maintenance, repair and overhaul company in the industry.

"When all the 7E7 work is decided, Honeywell is confident we will have significant content on the Boeing 7E7 Dreamliner," said Johnson. "It will be content that matches our strategy and technology, that has favorable shareholder return, and is focused on technical value differentiation," Johnson continued. "And don't forget that this model will be followed later by other model competitions with larger additional volume fleets and where we currently have greater shipset content."

Johnson was also quick to point out that Honeywell expects to supply technical products into other systems. "We will likely be a supplier to the engine and other major mechanical subsystems manufacturers selected by Boeing to be on the 7E7 team," Johnson added.

"We are the most complete avionics and equipment supplier in the industry, with major presence in the Air Transport, Business Jet, Regional Jet, General Aviation, Defense and Space segments of the Aerospace industry. I'm excited about the future of our customers, our industry and our business," Johnson concluded.

Honeywell International is a $23 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; specialty chemicals; fibers; and electronic and advanced materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, Chicago and Pacific Stock Exchanges. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. For additional information, please visit www.honeywell.com.

Based in Phoenix, Honeywell's aerospace business is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.

This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.